Drilling to Commence at Two Indonesian Gold Projects
November 23, 2010, -- Vancouver -- Golden Peaks Resources Ltd. (TSX: GL) (the "Company")
is pleased to provide an update regarding Reliance Resources Limited's ("Reliance") exploration activities in Indonesia.
RELIANCE RESOURCES ADVANCES EXPLORATION ON INDONESIAN PROJECTS; DRILLING TO COMMENCE DECEMBER
- Significant progress made on proposed acquisition of Reliance Resources Limited
- Due diligence and definitive legal agreements well advanced
- 43-101 technical report complete
- Reliance taken delivery of two company-owned diamond drill rigs; drilling to commence at Tanoyan and Palopo projects, Sulawesi
- Initial 5,000m drill program to build on inferred resource at Tanoyan
- Expands infrastructure, communications and logistical support
As reported on 2 November, Golden Peaks announced the proposed acquisition of Reliance, an unlisted Australian public company, which holds the rights to five prospective gold exploration permits on the islands of Sulawesi and Halmahera in eastern Indonesia. Significant progress has been made to progress the transaction, and Golden Peaks expects to complete the acquisition of Reliance in the near term.
Reliance has advised Golden Peaks that in mid-December it will commence drilling at both the Tanoyan and Palopo prospects on the Island of Sulawesi (Figure 1 below).
Figure 1: Map of Indonesia highlighting magmatic arcs, major mines and Reliance properties
Two company-owned diamond drill rigs have been purchased and are now being assembled and tested before being shipped up to site. An initial 5,000 metre program is planned for Tanoyan, commencing in December, with the aim of building on the inferred mineral resource. Assay results will be reported throughout the drilling program.
Reliance already has a dedicated team on-site at all of its main prospect areas including a Senior Geologist, a Senior Logistics Officer, a Senior Field Assistant, a Community Relations Consultant and the necessary administrative support. Additionally, all necessary infrastructure has been set up including accommodation, communications and logistical support to support exploration activities.
Reliance also has an active exploration program for the remainder of the fourth quarter of calendar year 2010 to advance its other projects in Indonesia. Works including geological mapping, trenching, sampling and modelling of vein systems have been planned.
Scott Emerson commented: "We are pleased with the progress we have made with this transaction in such a short period of time, and we are very confident of completing all due diligence and documentation in the near term. It is also pleasing to note that Reliance will shortly commence drilling activities on two of its advanced gold projects in Indonesia. This presents an exciting opportunity for Golden Peaks' shareholders and we look forward to learning more about the results of these initial drilling programs.
"Reliance Chairman Gary Lewis added: "We have fast-tracked exploration activities at Tanoyan in order to build on the existing inferred mineral resource, and we are ahead of schedule. We also expect to complete a number of other exploration milestones before the end of the year which will result in an increased drilling program for calendar 2011."
Media Information, contact
Scott Emerson, Chairman and Director
Investor Information, contact:
Mike Kordysz, Investor Communications
The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.